According to the Itan FDD, what is the scope of the 'Dispute' definition?

According to Itan's 2025 Franchise Disclosure Document, a 'Dispute' is defined broadly as any Claim, dispute, or disagreement between Itan and the franchisee. This includes any matter pertaining to the interpretation or enforcement of the franchise agreement, issues related to the offer or sale of the franchise itself, and any aspect of the relationship between Itan and its franchisees. This definition is important because it sets the stage for how disagreements will be handled, typically starting with negotiation and mediation before potentially escalating to litigation.

This broad definition means that virtually any conflict that arises between an Itan franchisee and the company could be subject to the dispute resolution process outlined in the franchise agreement. This could range from disagreements over marketing obligations or territory rights to more serious claims of breach of contract. Franchisees should be aware that this definition is not limited to specific types of claims, but rather encompasses any and all disagreements.

It is also important to note that certain claims, referred to as 'Excluded Claims' (alleging a breach of §14, §17 or §21), are not subject to mandatory negotiation or mediation unless both parties agree. This means that Itan can pursue litigation for these specific claims without first attempting to resolve the issue through negotiation or mediation. Understanding the scope of the 'Dispute' definition and the exceptions for 'Excluded Claims' is crucial for any prospective Itan franchisee to understand their rights and obligations in the event of a disagreement with the franchisor.